According to the Crowne Plaza agreement, what is the definition of a 'Customer'?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In any state where a lease without any additional charge is not permitted (e.g., in Wisconsin) or Customer elects to lease additional Dispensers, such Dispensers will be leased to Customer at an annual lease rate calculated by multiplying the total installed cost of the additional Dispensers by the then-current lease factor. The lease factor currently in effect for Dispensers is 0.24. Should the lease factor change during the Term, any Dispenser installed after the change goes into effect will be subject to the new lease factor. For the avoidance of doubt, if the ownership and/or management of a Hotel changes, the then-current lease factor will remain in effect for that Hotel. Charges will be invoiced. Any unpaid invoices will be handled as follows (the "Unpaid Invoice Procedure"): All unpaid invoices by a Hotel will be subject to Company's payment/credit terms and conditions applicable to such Hotel. Furthermore, Company may refuse to deliver further any Company Beverages to the affected Hotel until the unpaid invoice is satisfied.
Crowne Plaza FDD - 4-15-25 (306)
All Dispensers provided by Company will at all times remain the property of Company and are subject to the terms and conditions of the Lease except as specifically changed by the Program Terms and Conditions or the Standard Terms and Conditions of this Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza Franchise Disclosure Document excerpts provided, a specific definition of 'Customer' is not available. However, the term 'Customer' is used in the context of leasing equipment such as dispensers, where the franchisee (the hotel) is referred to as the 'Customer'.
In the context of equipment leases, the FDD excerpts indicate that if a Crowne Plaza franchisee chooses to lease additional dispensers or equipment, they will be referred to as the 'Customer' in that transaction. The 'Customer' is responsible for lease payments, and unpaid invoices are subject to the company's payment/credit terms. The equipment remains the property of the company, and the lease is governed by specific terms and conditions.
While the excerpts do not provide a formal definition, the use of 'Customer' implies any Crowne Plaza franchisee who is leasing equipment or utilizing services provided by the company. To fully understand the scope of who is considered a 'Customer' under the franchise agreement, a prospective franchisee should seek clarification from the franchisor regarding all contexts in which this term is used and what obligations or benefits are associated with it.